Intel Exiting 5G Smartphone Modem Business, Won't Make 5G iPhone Chips at All

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Apr 16, 2019.

  1. MacRumors macrumors bot

    MacRumors

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    Intel this afternoon announced plans to exit the 5G smartphone modem business to instead focus on opportunities for 4G and 5G modems in PCs, internet of things devices, and other data-centric devices.

    The announcement comes just hours after Apple and Qualcomm reached a settlement and agreed to drop all litigation against one another. Intel said that it will continue current customer commitments for existing 4G smartphone modems, but it will not launch 5G modems in the smartphone space.

    [​IMG]

    In a statement, Intel CEO Bob Swan said that there is "no clear path to profitability and positive returns" in the smartphone modem business.
    Rumors earlier today suggested Apple would use Qualcomm's 5G chips in its 2020 iPhones, and now it's apparent that the Cupertino company has no choice with Intel opting to pull out of the chip business all together.

    Following Apple's legal battle with Qualcomm, Intel was the sole supplier of modem chips for the 2018 iPhone lineup and planned to provide 5G chips for Apple in 2020.

    Intel had been working on the XMM 8160 5G chip, which was going to be used in the 2020 iPhone lineup. Rumors earlier this month indicated the relationship between Apple and Intel had grown tense as Intel began missing developmental deadlines on the 5G chip, leading Apple to lose confidence in Intel's ability to provide the chips in time for a 2020 5G iPhone launch.

    Apple appears to have been left with no choice but to settle with Qualcomm in order to be able to roll out a 5G iPhone in 2020 as planned. Apple's settlement with Qualcomm included a six-year licensing agreement and a multiyear chipset supply agreement.

    Apple is said to be sticking with Intel chips in 2019 because it's too late for the company to adopt Qualcomm's chips, but in 2020, Qualcomm may be Apple's only chip supplier once again.

    To reduce its reliance on Qualcomm, Apple is working on its own chip technology, but Apple's own modem chips aren't expected to be ready until 2021.

    Article Link: Intel Exiting 5G Smartphone Modem Business, Won't Make 5G iPhone Chips at All
     
  2. I7guy macrumors P6

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    This answers many unanswered questions. Didn’t see this coming.
     
  3. Quu macrumors 68030

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    I get the sense Apples deal with Qualcomm was not the result Intel was looking for.
     
  4. dlewis23 macrumors 6502a

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  5. smartbot macrumors regular

    smartbot

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  6. SoN1NjA macrumors 68000

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    #7
    Honestly glad we’re going back to QC, their stuff just works better
     
  7. atomic.flip, Apr 16, 2019
    Last edited: Apr 16, 2019

    atomic.flip macrumors regular

    atomic.flip

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    Thank god their chips absolutely sucked. And now that Qualcomm and Apple have made up we can have a quality product.
     
  8. mozumder macrumors 6502a

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    Why do they even bother in the mobile space?

    Intel should just stick to servers.. and drop desktops/laptops as well.

    Let ARM take that over.
     
  9. NaimNut macrumors member

    NaimNut

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    #10
    Wow

    Chicken or the egg?
    Maybe Intel was never really in the 5g mobile game and Apple needed to settle out of court.
     
  10. omihek macrumors 6502

    omihek

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    #11
    Qualcomm: "Well, well, well. How the turntables..."
     
  11. dannyyankou, Apr 16, 2019
    Last edited: Apr 16, 2019

    dannyyankou macrumors 604

    dannyyankou

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    #12
    Ok Apple, you have no choice now. Either make up with Qualcomm or you’re stuck on 4G forever. Or make your own chips.

    Edit: I didn’t see the earlier story about the settlement. Nevermind.
     
  12. BasicGreatGuy Contributor

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    I bet it had a lot to do with it for both parties involved in the lawsuit.
     
  13. JPack macrumors 68040

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    Not surprised at all.

    Intel showed nothing at MWC2019. Not even a non-working chip. Meanwhile, Qualcomm and Huawei were both showing demos.
     
  14. BasicGreatGuy Contributor

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    Will we see Qualcomm chips in the 2019 phones? I am guessing we will.
     
  15. tongxinshe macrumors 6502a

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    #16
    This is a bad bad news to Apple and extremely good news to Qualcom. Expect Apple’s stock price to start sliding down, big.
     
  16. Kabeyun, Apr 16, 2019
    Last edited: Apr 16, 2019

    Kabeyun macrumors 68020

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  17. munpip214 macrumors regular

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    Hard to say, if Intel wasn't going to do 5G until 2020 then Apple may have been fine with their 2019 modems. They would have to be basically done at this point since FCC requirements need some testing 6 months prior to release.
     
  18. jase1125 macrumors 6502

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    #19
    The Apple apologists will explain how this was in the Apple master plans and how Qualcomm capitulated to end the lawsuit. This proves exactly the opposite. Apple paid up as they should have.
     
  19. JPack macrumors 68040

    JPack

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    Given that Apple caved to Qualcomm demands, yeah. Bad news for Intel though. The upside is it makes more sense for Intel to focus on their high margin x86 server business.
     
  20. Kaibelf, Apr 16, 2019
    Last edited: Apr 16, 2019

    Kaibelf macrumors 68020

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    #21
    Or the results Intel choked out prompted Apple’s deal.
     
  21. BasicGreatGuy Contributor

    BasicGreatGuy

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    #22
    Definitely a tight deadline scenario as usual for Apple. Would be nice to see Apple release a month late just so they could get Qualcomm in.

    The rumors will be flying around the internet even more so after today.
     
  22. Andres Cantu macrumors 68030

    Andres Cantu

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    #23
    Good riddance, Intel. I might not like everything Qualcomm does, but their modems are the best bar none.

    And nothing's worse than having different parts for the "same" product. Looking at you, iPhone 6s A9 and iPhone 7/8/X modems.
     
  23. weup togo macrumors 6502

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    #24
    Wow guess this puts a bow on the whole Apple Qualcomm story. I made this comment in the other thread.

     
  24. I7guy macrumors P6

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    Sounds like Qualcomm caved, they have been hurting for apple's lost revenue.
     

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